Akorn Pharmaceuticals has announced they are filing chapter 7 bankruptcy and laying off hundreds in Decatur, Ill., WCIA.com reported. In a company-wide video call, Akorn President Douglas Boothe announced to employees that Wednesday would be the last day they can visit the office to pack up their belongings. Mayor of Decatur Julie Moore Wolfe estimates about 450 workers were laid off by Akorn. Boothe said the company had been looking for potential buyers since last year. “The company’s owners have just informed us they will not provide any additional financing required to run the business,” Boothe said. “Their decision leaves us, the board and the ownership and the management team, with no other alternatives to conclude the sales process and initiate bankruptcy proceedings.” The pharmaceuticals company will terminate all benefits from employees at the end of the month. Boothe also said they will be unable to pay severance or provide COBRA health insurance coverage to their former employees. Akorn previously filed for chapter 11 protection in 2020. Illinois Rep. Sue Scherer (D-Decatur) believes the company broke state law. Illinois’ WARN Act requires companies of more than 75 employees to give state and local officials 60 days’ notice before a mass layoff if they are laying off more than a third of the location’s workforce, or 250 workers. If the company is found violating the WARN Act, Akorn is liable to give backpay and benefits to their workers for every day they are in violation.
